Mutual fund giant Vanguard has implemented the Knowledge Based Authentication (KBA) platform from Verid to reduce fraud risk. The firm will use KBA as part of the account opening process in the online and phone channels with certain types of accounts."Knowledge Based Authentication significantly raises our confidence about an individual's identity," said Tim Thornton, principal, Vanguard. "The fact that it works in both our online and phone channels is a major advantage. We plan to extent the use of Verid's solution to reduce fraud risk and improve our customer experience."
The KBA platform asks a series of multiple-choice questions that are unique to each individual when the customer attempts to open an account. According to Verid, the solution is currently in use at 12 of the top 20 financial services providers.